Although the Turkish central bank cut interest rates today, it also raised reserve requirements, so the overall impact on monetary conditions is ambiguous. The key point is that policymakers are in a Catch-22 whereby they are coming under pressure to cut rates to revive the economy, but doing so risks an unwelcome rebound in credit growth and renewed concerns over the current account deficit.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services